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HomeMy Public PortalAboutPurchasing PolicyPage 1 of 9 CITY OF PARKVILLE Policy Title: Purchasing Policy Policy Number: 100-02 Category: Board Effective Date: February 5, 2013 Resolution No. 02-01-13 Updates: Res. 23-014 -- 12/19/23 Res. 17-016 – 6/6/17 Res. 16-012 – 8/2/16 Res. 10-02-14 – 10/20/14 Ordinance 2674 – 3/5/13 I. PURPOSE As a public entity the City is a steward of public funds. The primary purpose of this Purchasing Policy is to ensure that the City obtains goods and services through a competitive process to obtain the best value, cost and quality. This Policy is not an exclusive list of procurement options available to the City, and such options may be pursued in a manner consistent with applicable law, e.g., construction manager at-risk projects (Section 67.5050, RSMo.; design-build projects (Section 67.5060, et seq., RSMo.) In no instance will this Policy apply to the extent that doing so would be inconsistent with superseding state or federal law, or otherwise conflict with applicable laws, regulations, or grant-based requirements or conditions. II. GENERAL REQUIREMENTS A. Revisions: Formal amendments to the Purchasing Policy require Board of Aldermen approval. B. Administrative Policies: The City Administrator may approve administrative policies to supplement this Purchasing Policy. C. Department Head Authority: Department Heads have the responsibility to make certain that purchases are within the scope of the adopted budget. Department Heads have the authority to approve acquisitions in the manner described in this Policy. D. Familiarity with Policy. All personnel of the City responsible for purchases shall become familiar with and follow the City’s policies and procedures as they relate to purchasing. E. Local Preference. It is the City's intention to purchase from local suppliers, as applicable, as it selects the best and most reasonably priced source for each transaction. The local residence of a supplier (City, County, and State) may be a factor considered in selecting among bidders on a purchase. It is the determination of the Board of Aldermen that, in certain instances, choosing a local supplier serves the valid public purpose of supporting local businesses that, among other attributes, pay taxes to the City. The City of Parkville desires to support local Parkville business whenever possible by purchasing locally if feasible and in compliance with this Policy. Whenever satisfactory goods and services are available locally, local Parkville businesses are invited to provide bids to supply these needs. Preference to local Parkville shall be given in instances in which quality and service are equal and the local Parkville business bid/quote does not exceed the submitted lowest Page 2 of 9 out-of-city, out-of-county, or out-of-state bid/quote by more than three percent (3%). Preference to Platte County (outside Parkville) shall be given in instances in which quality and service are equal and the local Platte County business bid/quote does not exceed the submitted lowest out-of-county or out-of-state bid/quote by more than two percent (2%). Preference to the State of Missouri (outside Parkville and Platte County) shall be given in instances in which quality and service are equal and the local State of Missouri business bid/quote does not exceed the submitted lowest out-of-state bid/quote by more than one percent (1%). The maximum preference allowed for local preference is $30,000. F. Fixed Assets. Upon purchasing any tangible asset (property, plant, or equipment) each Department Head will consult with the City’s Deputy City Administrator/Finance Director, or his/her designee, to determine whether such asset should be included in the City’s ongoing fixed asset inventory. If so, a complete description of the asset being purchased and its value will be provided to the Finance Department for inclusion in the fixed asset inventory. G. Standard Documents. The City has established the following standard purchasing document templates: work authorization, professional services agreement, small construction contract for maintenance (with notice to bidders), small construction contract for new construction (with notice to bidders), and large construction contract (with sealed bids project manual). Section IV of this Purchasing Policy explains the appropriate purchasing document to use for each purchasing circumstance. The templates may be amended from time to time with approval from the City Administrator and City Attorney. Agreements that are different than these templates may be used when determined to be appropriate by the City Attorney. An invoice and/or receipt is required to process payment for all approved purchases, in addition to the applicable purchasing document. H. Purchases Supported by Grant Funds. Department Heads shall review all requirements for grant funding to ensure the procurement process required as a condition to receiving said grant funds are complied with during the procurement of the item. The City Administrator will assist in the inclusion of all required procedures that are in addition to the requirements of this Policy. I. Work Authorization and E-Verify. For any contract for services greater than $5,000, the successful bidder shall comply with Section 285.530, RSMo. as amended, and (1) provide by sworn affidavit affirmation that it does not knowingly employ any person who is an unauthorized alien and (2) provide documentation affirming its enrollment and participation in a federal work authorization program with respect to the employees working in connection with this contract. The required documentation affirming enrollment must be from the federal work authorization program provider. Letter from respondent reciting compliance is not sufficient. When applicable, solicitations shall require the signed and notarized Work Authorization Affidavit and the electronic signature page from the E- Verify program prior to the issuance of a contract. J. Prevailing Wage. Contracts for construction or major repair projects that have an estimated or actual expenditure of $75,000 or more shall comply with Section 290.210, RSMo. et seq, as amended. Missouri’s prevailing wage law establishes a minimum wage for certain projects. For assistance determining if a project is prevailing wage, contact the City Attorney. Page 3 of 9 III. PURCHASING AUTHORITY A. The City of Parkville Board of Aldermen has delegated the authority to make purchases as follows: a. Department heads are authorized to approve expenditures up to $10,000 provided that funds budgeted are equal to or greater than the cost of the item. The City Administrator is authorized to restrict departmental spending on an as- needed basis, such as in the event that revenues fail to meet annual budget projections. b. The Deputy City Administrator/Finance Director is authorized to approve expenditures between $10,001 and $20,000, provided that funds budgeted are equal or greater than the cost of the item. c. The City Administrator is authorized to approve expenditures between $20,001 and $50,000 provided that funds budgeted are equal to or greater than the cost of the item. When submitted by a department head or other authorized staff, the request should be accompanied by a written recommendation to City Administrator. d. The Finance/Audit Committee must make a recommendation to the Board of Aldermen for all purchases of more than $50,000. The Finance/Audit Committee recommendation may be waived for time sensitivity or other special circumstances that warrant immediate action by the Board of Aldermen. The Board of Aldermen must approve all purchases of more than $50,000. Each request shall include a staff recommendation with the relevant background information. A budget impact should be included with all requests. B. Projects may not be broken down into smaller projects for the purpose of exceeding purchasing authority. C. All purchases made by the City must be approved by the Board of Aldermen through majority approval of the Accounts Payable Report, generally on a bi-monthly basis at scheduled legislative meetings. IV. PROCUREMENT REQUIREMENTS A. Purchases For Goods and Materials, Vehicles and Equipment, New Construction, and Maintenance and Repair a. A minimum of three quotes are required, whenever this is possible, for any purchases costing more than $2500 and less than $25,000. Quotes should be documented, whether the quote is received in writing or over the phone. Justification should be provided in writing to the purchasing authority if it is not possible to obtain three quotes. b. Any purchase of $25,001 and up to $50,000 may be made by adequate and reasonable competition by written quotation, obtaining a minimum of three written quotations for the purchase. Adequate records to document the competition shall be maintained. Justification should be provided in writing to the purchasing authority if it is not possible to obtain three quotes. c. Sealed bids are required for all purchases of goods and materials with a total value exceeding $50,000. i. A Notice to Bidders for purchases totaling more than $50,000 shall be advertised to all known local and other prospective and qualified bidders Page 4 of 9 and shall be posted on the City’s official website. ii. The City Clerk, or authorized City personnel, shall open all sealed bids and read them aloud in the presence of at least one (1) witness. A bid tabulation of all bids received will be on file in the City Clerk’s Office for public inspection. iii. The Board of Aldermen shall award the bid to the lowest responsible bidder whose bid is in the best interest of the City. iv. The City reserves the right to accept or reject any or all bids and to waive any provisions or technicalities therein. v. The sealed bidding requirements may be waived by the Board of Aldermen for emergencies or other special circumstances. vi. For contractual, commodities, vehicles and equipment purchases, staff should consult with cooperative purchasing resources such as the State of Missouri, the Kansas City Regional Purchasing Cooperative (KCRPC), GSA, Sourcewell, etc., to determine if there are any state or regional cooperative purchasing contracts for the specified vehicle or equipment. d. For the purchase of used vehicles and equipment, staff shall attempt to obtain a minimum of three quotes for similar products that meet the minimum specifications of the required purchase. Staff may request advance approval from the applicable purchasing authority to expend up to a maximum specified amount for a product meeting established specifications. Staff should research all available listings (internet advertisements, newspaper advertisements, local dealers, auctions, etc.) to find the best product to meet the need of the purchase at the lowest possible price. e. When applicable, the City may furnish a sales tax exemption certificate number as supplied by the State of Missouri in accordance with state law. f. All new construction purchases in the amount of $50,000 or less must be accompanied by a small construction contract. All new construction purchases in excess of $50,000 must be accompanied by a large construction contract. The appropriate construction contract shall be made part of the sealed bid package and approved by the contractor prior to approval by the appropriate purchasing authority. Upon approval, the appropriate Department Head shall forward an executed copy of the construction contract to the City Clerk, along with any applicable attachments including the insurance certificate. g. Although quotes or sealed bids are desired to the extent possible, routine repairs and maintenance may be performed at pre-approved suppliers/shops. This is intended to address the impracticality of getting bids for certain types of work. For example, where engine parts must be disassembled to determine the work that needs to be done, or where time constraints make obtaining bids impractical. h. All maintenance and repair purchases in the amount of $25,000 or less must be accompanied by a work authorization. All maintenance and repair purchases in excess of $25,000 but less than $50,000 must be accompanied by a small construction contract. All new construction purchases in excess of $50,000 must be accompanied by a large construction contract. The appropriate purchasing document shall be made part of the sealed bid package and approved by the contractor prior to approval by the appropriate purchasing authority. Upon approval, the appropriate Department Head shall forward an executed copy of the work authorization or construction contract to the City Clerk, along with any applicable attachments including the insurance certificate. Page 5 of 9 B. Professional Services (Other than Engineering, Architectural, or Land Surveying Services Covered by Section IV.D, below). a. When the professional services fee shall not exceed $25,000 the City Administrator, with input from appropriate City staff, may select a firm or individual based upon the particular firm’s or individual’s expertise, previous performance, competitive pricing, and readiness for the service requirement of the City. b. In the event the fees for professional services on any proposed matter are estimated to exceed $25,000, a Request for Proposals (RFP) or Request for Qualifications (RFQ) process will be utilized and the following will apply: i. The City will obtain necessary professional services on the basis of demonstrated competence and qualifications for the type of service needed at fair and reasonable prices. ii. Prices shall not be the principal factor on which professional services are selected. iii. Preference shall be given to qualified professional firms having a principal office within the Parkville city limits, recognizing the benefits to the local economy realized through spending local dollars locally. Preference may also be given to qualified professional firms that have demonstrated a commitment to the community through membership in the Parkville Area Chamber of Chamber and EDC (PACE). iv. If the City and/or a private developer have invested time and money in a project for which a professional firm has already been involved in preliminary work, the Board of Aldermen may select that firm on the basis of City staff’s recommendation or a developer’s request, assuming a reasonable fee can be negotiated. v. RFQs or RFPs will be advertised on the City’s website and sent to interested firms. vi. A selection committee reviews all proposals, conducts interviews (if needed), checks references (if needed), and makes a recommendation to the purchasing authority. vii. Staff is authorized to negotiate a fee and scope of services with the preferred vendor as recommended by the selection committee. The scope and fee must be incorporated into a professional services agreement for review and approval by the relevant purchasing authority. If an agreement cannot be reached on the scope and fee, the purchasing authority may authorize staff to negotiate with the second choice of the selection committee, and so on, until a satisfactory agreement is negotiated. c. All professional services must be accompanied by a professional services agreement. Depending on the scope and nature of the project, and with City Attorney approval, a customized agreement may be substituted for the standard professional services agreement upon request of the vendor. Upon approval, the appropriate Department Head shall forward an executed copy of the professional services agreement to the City Clerk, along with any applicable attachments including the insurance certificate. C. Emergencies a. An emergency is defined as any instance in which either the City's infrastructure or the City's citizens or their property are in jeopardy, and timeliness is crucial. b. The Mayor or City Administrator can approve up to $50,000 for non-sewer related Page 6 of 9 emergencies, and up to $150,000 for an emergency purchase when the expense will be charged to the City's Sewer Fund. c. The Mayor and the City Administrator may not combine spending authority for the purpose of increasing the amount that can be approved. d. As a courtesy, the City Administrator or Mayor will notify Board of his/her action, in writing, via the most expeditious method possible. This is not an approval step. e. To the extent possible, the City will enter into multi-year emergency services contracts for routine services such as plumbing, electricity, etc. in order to pre- establish labor and materials fees. f. If an existing emergency services contract does not exist for a required purchase, or the emergency services contractor cannot respond in a timely manner, staff shall attempt to obtain a minimum of three quotes from other providers if the process does not jeopardize the timeliness of addressing the emergency. g. In the absence of an existing emergency services contract, a work authorization should be executed in advance of the emergency purchase. If a work authorization may not be executed in a timely manner, staff should attempt to document the scope and fee in writing with the contractor via email or an on-site. D. Qualifications Based Selection (QBS). The QBS process must be used for selection of professional services consultants for architecture, engineering, and land surveying services in accordance with Section 8.285, RSMo. et. seq., as amended. QBS may be used for other types of services allowed or required by law and determined by the City Administrator. a. Whenever architectural, engineering, or land surveying, services are needed, the Department Head or designated representative of the City department conducting the solicitation shall prepare a Request for Qualifications (RFQ). The RFQ will include a description of the project or services required and the criteria to be used in evaluating responses from interested professionals. Criteria should be tailored for the specific project or services needed and may include such items as: i. The specialized experience and technical competence of the respondent with respect to the type of services required; ii. The capacity and capability of the respondent to perform the requested work; iii. The past record of performance of the respondent with respect to such factors as control of costs, quality of work, and ability to meet schedules; iv. The respondent’s familiarity with the area in which the project is located; and/or v. The respondents’ understanding of the required services and specific ways in which the firm is most qualified to provide those services. b. When an RFQ is used, a selection committee shall be established by the Department Head or the City Administrator to review the qualifications. Each committee member will score each respondent’s response according to the criteria set forth in the RFQ. The scoring of respondents by the committee will be used to determine the top-rated respondent, which may be interviewed at the discretion of the Department Head or the City Administrator. If interviews are conducted, the respondents are again scored after the interviews according to the criteria and a final scoring by the committee will determine the most responsive and qualified respondent(s). The solicitation file shall contain documentation of the basis for selection. c. If the Department is unable to negotiate a satisfactory contract with the selected Page 7 of 9 respondent, those negotiations shall be terminated. Negotiations shall then commence with the second highest scoring respondent. If there is failure to reach agreement with the second respondent, the process will be repeated until a contract has been successfully negotiated. At the conclusion of negotiations, the City should request a fully executed best and final offer (BAFO) from an authorized agent of the selected firm(s) to document any changes made during the negotiation process. Said BAFO shall be incorporated into the applicable contract/agreement. If there is a failure to negotiate a contract with all of the most responsive and qualified, top-rated respondents, as determined by the Department Head or the City Administrator, the Department Head or the City Administrator shall reevaluate the necessary services and scope of work and re- issue a revised RFQ if appropriate and proceed in accordance with the provisions of this article. V. DISPOSAL OF CITY PROPERTY A. Approval to Dispose of Property. The City Administrator or his/her designee shall give final approval in writing before any City item of personal property is disposed of or transferred from a City Department. B. Surplus Assets. When an item of personal property is no longer needed by a City Department, the respective Department Head should attempt to dispose of the item according to following steps, in priority order: a. Redistribute the item within the City to another Department. b. Trade or sell the item “as is” through available markets approved by City Administrator, including but not limited to online or live auctions. c. Give the item to another local governmental agency or local non-profit agency. d. Items which are damaged or have a nominal value may be recycled or disposed as waste. C. Disposal of Real Property. The sale or transfer of real estate requires prior approval by the Board of Aldermen. D. Prohibitions. Under no circumstances will any employee, or family-member of an employee, have access to or ownership of any asset that is being disposed of in accordance with this Policy. E. Computing Technology. Regardless of how computing equipment is disposed of, all data residing on any computer or other electronic storage device will be removed from the equipment prior to disposal. F. Other Fixed Assets. Prior to disposing of City assets, each Department Head will determine whether such asset is part of the City’s ongoing fixed asset inventory. If so, a complete description of the asset being disposed of will be sent to the City’s Deputy City Manager/Finance Director or his/her designee. VI. ALTERNATIVE PROCUREMENT METHOD A. Cooperate Purchasing. Cooperative Purchasing is a form of procurement that can take Page 8 of 9 many forms. Common forms used by the City are: a. Two or more entities combine requirements and solicit bids or offers for goods or services. b. Entities include terms in their solicitations that allow a similar entity to piggyback on the awarded contract. c. Third Party Aggregators that bring multiple entities together to represent their requirements resulting in the award of contracts. A cooperative contract is primarily intended for purchases of goods and services. If a Department desires to use a cooperative contract for services, please contact the City Administrator. For approval purposes, the approval levels defined in Section IV shall apply. The City Administrator shall have the authority to approve the City’s participation in cooperative contract(s). The City Administrator and/or City Attorney will review cooperative contract(s) to make sure they are competitively awarded and cost effective, and contain all of the legally required terms and conditions, including E-Verify, non-appropriation, prevailing wage, etc... If necessary, the City may amend the cooperative contract to add legally required terms and conditions. The City may also negotiate the fees and costs of a cooperative contract, provided the goods and services of the cooperative contract do not change. The Department designee will determine if the contract meets the Department’s needs. If service or work is to be performed on City property, then review the contract’s included insurance as it may not include adequate coverage and protection for the City. Contact the City Administrator for assistance. VII. EXCEPTIONS TO COMPETITION REQUIREMENTS. A. Utility purchases (including but not limited to electricity, water, sewer, and gas) are exempt from the procurement requirements of this Policy. The City Administrator, or his/her designee, is responsible for reviewing all bills for accuracy before payment and to implement methods to control and reduce costs, to the extent practical. Payments must be approved by the Board of Aldermen through majority approval of the Accounts Payable Report. B. Sole Source. Competitive bids or proposals are not required if the City Administrator has determined in writing one or more of the following conditions are met: a. Goods or services are proprietary and/or only available from the manufacturer, a single distributor, or service provider; b. Based on past procurement experience, it is determined that only one (1) distributor services the region in which the goods or services are needed; c. Goods or services are available at a discount from a single distributor for a limited period of time; d. Company has significant previous or specialized knowledge on a proposed project that would result in significant monetary and/or time savings in completion of the project; or e. To maintain uniformity and consistency in an area (e.g. decorative light pole or other infrastructure), a good must be purchased from a single distributor. If a product or service can be provided by more than one company, it generally does not qualify as a sole source unless it fits within one of the exceptions above. C. Any purchase in which the City Administrator determines that a waiver is in the best interest of the City and not in violation of applicable state or federal law. Page 9 of 9 VIII. PAYMENT/OBLIGATION(S) METHODOLOGY: A. The City of Parkville payment processing for payroll, contractual, commodities, equipment and all obligations of the city are processed in accordance with 79.300, RSMo. et. seq., as amended. a. This requires the City Treasurer receive and account for all obligations of the city, with payments to be signed by the mayor, and attested by the City Clerk. The functionality is as follows: i. Finance Department processes items for payment, ii. Accounts Payable/Payroll Register is approved by both the Treasurer and the Mayor, iii. Checks are printed or payments processed via ACH, iv. Signed Accounts Payable Register is reported (attested) at the next available Board of Aldermen meeting.